COE Renewal Price Cat A, B & C | Results for April 2022 & COE Trend
COE is up across the board again for the four wheeled categories in the last bid of March. Why is this not unexpected? The writing has been on the wall for some time. We have warned of this from long time back when we saw it coming, like here back in December when we had mentioned the trend in upcoming months.
And Cat A continues its climb. This is also expected.
In the light of the latest change of rules announcement from LTA that gives uneven advantage to electric vehicles to go fight for COE in Cat A, making Cat A crowded with more new models, this is also expected. More on this in a bit.
Before that, this is how the latest COE bidding has gone down
COE Bidding Results – Second Bid March 2022
Cat A $71,556
This latest bid is a price increase of $3,055 (+4.46%) compared to the earlier bid of March 2022.
Cat A has again hit another multi year high. The last time there was a higher bid closed in Cat A was back in the first bid of May of 2015.
The number of bids put in for Cat A has, however, gone down from 962 to 765 (25% fewer bids) or close to a reduction of almost 200 submitted bids. Are the less buyers at the showrooms due to the climb in Cat A car prices?
Yet, despite this, the price of Cat A continues its upward climb.
Will the momentum of this climb be sustained? Or can it, with the reduction in number of submitted bids?
Cat B $98,889
Cat B has similarly increased this latest round, by $4,000 (+4.22%). Thankfully, this is lower than the jump two bids ago of more than $7k.
Thankful may not be the right word though, because this is another record high that has not been reached in Cat B as it zeros in on the $100k mark.
At the current price, there has not been a single bid that is higher than this in the past 20 years.
We had commented after the second bid of February in our roundup last month that “the next bid should be a reduction in price, as usually happens when the prices reach such a high peak so quickly.”
We were wrong. What Cat B did was just slow down the pace of increase in the first bid of March, where it went up by only $1,299. And now it has resumed its climb to reach a more than 20 year high.
Cat C $51,504
Cat C is also up, by $2,615 (+5.35%).
This is a story of fives. There have been five increases in a row for Cat C this year, which is coincidentally, or not, the same as Cat A and B. And for the latest 3 bids to close, each one has gone up by 5+% each time for Cat C.
Similar to Cat A, there has been a reduction in the number of bids submitted for Cat C at only 166 this bid, compared with 199 for the bid before this one, a 16.5% reduction in the number of entries submitted.
The introduction and stock arrival in Singapore of new fully electric commercial vehicles is probably driving up the prices. Dealers and owners may be bidding higher, giving back some of the incentives into the COE price.
Dealers may be indirectly benchmarking the new vehicle sale price to existing diesel commercial vehicles of the similar size in the setting of the new EV sale prices. But the new EV has a $30k incentive from LTA called EEAI (EV Early Adoption Incentive), and this is what gives them – dealers and owners to be – an advantage in being able to obtain COE for these vehicles, with the first $10k of the incentive given upon registration.
Keyword “More Accessible” Is A Driver for COE Prices
Government incentives have a big impact on the current trend towards electrification of our transport.
Looking outside our borders, China has been able to grow this EV manufacturing sector by giving incentives to their populace for the purchase of EV.
This has boost the sales of Tesla and also their domestic brands such as BYD, Nio and XPeng so much that growth of this sector and the supply chain has been nothing short of spectacular.
The number of new businesses in the past year being registered in China to supply parts to the EV manufacturers number in thousands.
And Singapore is doing the same right now.
The EEAI scheme has done much to bring attention as well as affordability to new electric vehicles. However, along with that comes the unwanted side effect of greater demand and hence more competition for the limited COE supply.
And if you need any reminder of where our COE quota has gone, take a look at the table over here in our earlier article, where we also mentioned that many of the hybrid cars are Cat B due to the motor adding more power to the car.
More than the monetary factor, the government is also promising the convenience of being able to charge your new electric car nearby. And as our minister above claims, we will have all HDB estates fitted with charging facilities in the not to distant future.
That, plus there are already hundreds of charging locations available islandwide, including free ones offered at some shopping locations. This is making it seriously tempting for the current owners of ICE (internal combustion engine) cars to consider swapping over to full electric.
All you need is to use the “Search” function in an app like SP Utilities or Greenlots (Shell) to find a charger near you.
Plus, Putin is not helping. I’m surely not the only one, with a petrol car, thinking of how $3/litre fuel is hurting my pocket and going easy on the accelerator. Did you notice others driving more sedately on the roads recently? It’s likely in a bid to save fuel!
Which brings me to the adjustment that LTA is making to EV COE categorization.
Cat A Electric Cars Allowed To Have Higher Power Than Petrol or Diesel Cars
This is what is happening:
If you have digested the above info, you will probably start having some of these thoughts:
- One, there will be models of cars that will fall into Cat A from May 2022, which are currently having to bid for Cat B COEs.
- There will be more models to consider, and their prices will now come within the budget for more families, due to the Cat A COE that can be used. The current late March bid Cat A to Cat B price gap stands at $27,333. So potentially, the same EV models would be selling at $20+k less than it did.
- Two, it is an unfair advantage, why should EV be allowed higher power and still be in Cat A to fight for COE against other smaller (and cheaper, but not for long) cars with less power? This will push up the prices of small petrol cars!
- Since that is the case, then why not I also jump in and take advantage of this advantage offered to me and get an electric vehicle that is in Cat A?
So what is this likely to do to COE prices?
Effect Of MPO Rule On This COE Bid and Upcoming COE Bids
Since the announcement of this MPO increase allowed for Cat A vehicles on the 8th of March, we have see a sharp increase in the prices of Cat A bids.
Cat A immediately jumped $5,501 for the bidding on 9th of March and rose a further $3,055 on the 23rd of March.
But you wonder why this is so, when this rule only takes effect in May 2022?
Cat A COE Jumped When MPO Rule Was Announced
Because dealers want to close the orders they had taken while they still can. They know that with the increased competition from more models coming into Cat A will drive prices up even higher.
And if they did not register and deliver cars before that, then likely they will be out of the money come May for their orders that are on guaranteed COE bid.
Plus they may lose sales for customers who want their money back if they do not convince these to top up on the sale price to obtain COE at a higher level.
It is also likely these same customers who need to top up will consider selecting a different vehicle – maybe jumping over to electric Cat A cars.
Cat B COE To Fall From Demand Moving Over to Cat A?
Sure there will be some reduction of demand from Cat B, but we feel this will not cause a fall in the prices of Cat B.
This is because Cat B is having such a small number of COE that the slightly smaller number of bids being put in is unlikely to affect the price much.
Our comment about Cat A prices this bid above “The number of bids put in for Cat A has, however, gone down from 962 to 765, close to a reduction of almost 200 submitted bids” highlights this fact.
Even with a significantly fewer number of bidders, the price can still rise.
Yes, the probability of having as high a price falls if the number of bidders decrease, but this is how our COE system works.
As long as the number of bids submitted is equal or greater than the COE quota, then there will not be $1 COE happening. And if the Nth highest bidder (N being the quota quantity) is willing to pay the current price, then that is where the price will stay. Even if the (Nth+1) bidder bid at only $1.
Theoretically, that means that even if the number of bidders equals the quota, we may still have the same price COE.
It is the perception of the car buyer, what he is willing to pay, that sets the price.
Buyer Perception Can Change
What a car buyer perceives to be a fair price can change over time. But it takes time.
So I’m afraid that those who are reading the news of war and high inflation coming, rising interest rates possibly affecting economic growth and then expecting suddenly lower prices will be disappointed.
These are not insignificant factors. They are significant and will affect the big economic picture including COE, but it will take time for their effects to be felt (probably in the next couple of quarters to come) and perceptions to change.
In light of this, then what do you do if you have a car that is coming up for COE renewal in the coming few months?
How About COE Renewal: Those Who Need To Renew COE This Month
It’s not much of an announcement this month, almost everybody already knows the price has gone up for COE renewal, given that the bidding prices for all Categories A to C are up for five times in a row already since the second bid of January 2022.
And since the PQP payable for COE renewal is the average of these bids, the price for renewal has also risen in tandem.
If you do not know what makes up the PQP COE renewal price, click here to find out.
Results for COE Renewal Price April 2022
This below are the 10-year COE renewal prices for April 2022.
For a 5-year COE renewal, just divide by two and round up to the nearest dollar.
But if you do not know the pros and cons between doing a 10-year or 5-year COE renewal and what factors you should consider before deciding, you should read about it here!
Cat A $63,220
Increased by $4,041 (+6.83%) over March 2022’s PQP price.
This is the sixth month in a row that Cat A renewal has gone up.
The price from six months ago was at $46,482 for Cat A October 2021. That seems not so long ago and at such an attractive price.
Since Cat A has risen $16,738 in a short half year’s time, is it worth it to renew the car?
Will we see more increases and is this the price you should renew at now before it goes even more? Well, that depends on many factors.
We can help answer these questions and guide you through your COE renewal loan to renew at the correct time.
Just click on WhatsApp to reach out to us and save thousands, just like we did for those who have contacted us earlier!
Cat B $88,862
Up by $5,398 (+6.47%) over the renewal price of March 2022.
Cat B is “one up” on Cat A, and has gone for seven months now any break in it’s upward climb.
And is this going to continue for the months that are to come after April and into May and June?
If your COE renewal is coming up, then one of the best things you can do for yourself is to come register with us for PQP monitoring, a free included service with your COE renewal loan, and we will let you know where it is going – to make sure you have the info to make an informed decision that can save you thousands!
We have many who will call to ask for info, so we only monitor for those who register with us for their COE renewal loans.
Just like those we helped before, you won’t regret contacting us!
Reach out to us using the WhatsApp button or fill in the contact form now!
Cat C $46,016
Up by $1,898 (+4.30%) when compared with to the PQP of March 2022.
This is more than double the increase in Cat C compared to last month.
This is April PQP shown above, but how will the COE renewal be in the near future for Cat C?
But trickier is to figure out which month is the best month to renew on.
Cat C is a little unique in that Cat C vehicles can be renewed for 5 years at the 10 year old mark without affecting vehicle value, as LTA will allow another COE renewal at the 15th year mark, unlike cars.
Struggling to figure out? We can help you peek into the future a little. Call us, and we will advise you best we can.
Just contact us with your needs for COE renewal and we will take care of the renewal loan as well as the question of when to renew it by, so as to maximise your advantage.
COE Renewal With A Difference
We have helped hundreds and we will also help you to secure an advantageous hire purchase car loan with the best terms and conditions avoiding the common pitfalls, and also to know when to renew if you register early with us for PQP monitoring as our customer.
That’s not all we help with – you also get to choose from all available banks and finance houses for your COE renewal loan, and we explain the benefits of each one to you if you’d like to know, before you pick the one that is most helpful in your situation. Sometimes a lower interest rate can cost more than a loan with higher interest!
We sincerely hope that you pay a lower COE renewal price and get a loan with good terms and conditions, and all our past customers can attest to that!
Click to WhatsApp if you have any queries or call 92782880 (during office hours). Or simply use the contact form on this page and we will call you back to assist.